Full Dollarization: The Pros and Cons

Eduardo Borensztein and Andrew Berg ()

No 2000/004, IMF Economic Issues from International Monetary Fund

Abstract: Analyzes the costs and benefits of full dollarization, or the adoption by one country of another country’s currency. Potential advantages include lower borrowing costs and deeper integration into world markets. But countries lose the ability to devalue, and become dependent on the U.S. Compares with currency board option.

Keywords: EI; currency; dollar; devaluation; unit of account; foreign currency; exchange arrangement; currency risk; money base; Currencies; Dollarization; Currency boards; Exchange rates; Global (search for similar items in EconPapers)
Pages: 22
Date: 2000-12-20
References: Add references at CitEc
Citations: View citations in EconPapers (95)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=4003 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfeci:2000/004

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Economic Issues from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().